At all relevant times, Ebro was a food manufacturer and licensed PACA dealer, and G&G was one of Ebro's suppliers. Between September 26 and October 4, 2007, Ebro sent G&G three purchase orders for jalapeno peppers. Each purchase order indicated the quantity of peppers ordered, the price per pound, a delivery date, and payment terms of "Net 30 Days," and each requested that, "[t]o ensure this order was received and processed, please sign and return via fax." A G&G representative signed the purchase orders and returned them to Ebro. G&G then shipped the peppers, which arrived between October 2 and October 10, 2007.

On or about the date of each shipment, G&G faxed an invoice to Ebro requesting payment. The invoices stated that the payment terms were "PACA 'terms,'" and set forth language intended to preserve G&G's PACA trust rights:

The perishable agricultural commodities listed on this invoice are sold subject to statutory trust authorized by section 5(c) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499e(c)). The seller of these commodities retains a trust claim over these commodities, all inventories of food or other products derived from these commodities, and any receivables or proceeds from the sale of these commodities until full payment is received.

Ebro did not pay a penny of the $42,920 purchase price of the peppers. On February 27, 2008, pursuant to 7 U.S.C. §§ 499f & 499g(a), G&G filed a complaint with the United States Department of Agriculture ("USDA") seeking reparations for Ebro's non-payment. The USDA entered a reparations order on August 8, 2008, awarding G&G $42,920 for the unpaid peppers, $300 in costs, and annual interest of 2.3 percent from November 1, 2007, until the date of payment.

Pursuant to 7 U.S.C. § 499g(b), G&G filed suit in federal district court to enforce the reparations order. G&G Peppers, LLC v. Ebro Foods, Inc., No. 09 C 489 (N.D. Ill.). That case was stayed when Ebro filed the underlying bankruptcy proceeding in March 2009. On June 19, 2009, G&G commenced an adversary proceeding to enforce the reparations order, to recover its attorney fees, and to obtain a PACA trust and turnover of assets to satisfy its claim. After a trial on stipulated facts, the bankruptcy court held that Ebro owed G&G $43,946.60 ($42,920 for the peppers plus 2.3 percent interest and $300 in costs), but that G&G had failed to preserve its PACA trust rights and thus was not entitled to priority over Ebro's other creditors. 424 B.R. at 426-31. The bankruptcy court also held that G&G was not entitled any attorney fee award under Illinois law. Id. at 424-26.

Discussion

G&G challenges the bankruptcy court's denial of its PACA trust claim and its request for attorney fees. The challenges are considered in turn.

The unpaid supplier, seller, or agent shall lose the benefits of such trust unless such person has given written notice of intent to preserve the benefits of the trust to the commission merchant, dealer, or broker within thirty calendar days (i) after expiration of the time prescribed by which payment must be made, as set forth in regulations issued by the Secretary, (ii) after expiration of such other time by which payment must be made, as the parties have expressly agreed to in writing before entering into the transaction, or (iii) after the time the supplier, seller, or agent has received notice that the payment instrument promptly presented for payment has been dishonored. The written notice to the commission merchant, dealer, or broker shall set forth information in sufficient detail to identify the transaction subject to the trust. When the parties expressly agree to a payment time period different from that ...

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